Profitability plunges in Q1, outlook remains unchanged
AutoWallis posted Q1/25 results this morning. The company achieved record quarterly revenues of HUF 107.3bn, increasing 20% YoY, mainly driven by closed acquisitions. Profitability shrunk further in Q1 after we saw some contraction last year, as EBITDA dropped -31.5% on the year to HUF 3.3bn, while EPS came in at HUF 1.21 (-55% YoY). The rise in fix costs may continue to deteriorate earnings in the short term, while according to the management, this is necessary to support inorganic growth aspirations. The management also mentioned that efficiency improvement measures are underway, therefore long-term strategic goals remain unchanged. Based on the weak earnings in Q1, we slightly adjust our 2025 forecasts, and as a result, we set our 12m TP at HUF 210, but we reiterate our Buy recommendation.AutoWallis Nyrt Formerly known as Altera Vagyonkezelo Nyrt. AutoWallis Nyrt, formerly known as Altera Vagyonkezelo Nyrt, is a Hungary-based investment company, with a focus on the automotive sector. The Company is engaged in retail and wholesale trade, service, short and long-term car rental. The Company is active in Central and Southeast Europe.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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